Cyber Security Insurance in 2025: What Your Business Needs to Know

At Your IT Man, we’ve noticed a significant shift in the cyber security insurance landscape that’s affecting businesses of all sizes. As your trusted MSP partner, we want to keep you informed about these changes and help you navigate the increasingly complex world of cyber insurance requirements.

The Changing Face of Cyber Insurance

In recent months, we’ve seen insurance providers become much more selective about which businesses they’ll cover. Carriers are now imposing stringent security controls as prerequisites for coverage following years of massive ransomware payouts that have made cyber insurance less profitable for them.

This shift means that obtaining and maintaining coverage is no longer just a matter of filling out a simple application. It requires a proactive security stance and documented controls.

What Insurers Are Demanding in 2025

Based on our experience helping clients secure and maintain their cyber insurance policies, here are the key requirements you should be prepared for:

1. More Rigorous Baseline Security Requirements

Insurance carriers now consider certain security measures as non-negotiable. These typically include:

• Multi-factor authentication (MFA) for all users, especially those with administrative access
• Endpoint detection and response (EDR) solutions actively monitoring all systems
• Regular vulnerability scanning and timely patching
• Offline or immutable backups that cannot be altered by attackers
• Formal incident response plans with documented testing

2. More Technical Questionnaires

Gone are the days of simple yes/no security questionnaires. Insurers now want specific evidence of your security controls, including:

• Detailed information about your network architecture
• Evidence of regular security testing
• Documentation of security awareness training
• Proof of continuous monitoring capabilities

3. Higher Premiums

Many of our clients are facing 30-50% increases in their cyber insurance premiums, even with strong security practices in place. This trend reflects the growing risk in the cyber landscape and the increasing costs of breach response.

4. Expanding Coverage Limitations

We’re seeing more policies that specifically exclude certain types of attacks or have exclusions for “inadequate” security practices. These exclusions can create significant gaps in coverage if not properly understood and addressed.

5. Increased Verification

Insurers are no longer taking businesses at their word regarding security controls. Many are now conducting:

• Pre-coverage security assessments
• Periodic security verification during the policy term
• Post-incident forensic reviews to validate security claims were accurate

How Your IT Man Can Help

As your technology partner, we’re uniquely positioned to help you navigate these changes:

• We can conduct readiness assessments to identify gaps in your security posture before you apply for coverage
• Our team can implement and document the required security controls
• We’ll help prepare comprehensive responses to insurer questionnaires
• Our regular security reviews can help maintain compliance with policy requirements
• If the worst happens, we can work directly with your insurer during incident response

Next Steps

If your cyber insurance is coming up for renewal in the next six months or you simply don’t have any, we strongly recommend scheduling a “Cyber Insurance Readiness Review” with our team. This proactive approach not only helps secure coverage but can potentially reduce premiums through demonstrated security maturity.

Contact us today to schedule your review and ensure your business remains protected both technically and financially against evolving cyber threats.